Proceedings of 5th European Business Research Conference 10 - 11 September 2015, St. Regis Hotel, Rome, Italy, ISBN: 978-1-922069-83-2 The Level of Consumer Willingness to Participate in the Experience Economy – The Case of Poland Monika Skorek The experience economy is a concept that can be defined as a new way of perceiving the market offer of an enterprise, focusing on the customer experience. Enterprises, both of the production and service industry, are becoming similar to one another on a massive scale, which makes it increasingly difficult to stand out. The response to this can be to offer the consumer an unforgettable experience related to a product or a service provided by a company. (Pine and Gilmore, 2011). This article analyses the conditions for development of the experience economy in Poland. I describes the results of qualitative research on the attitudes and opinions of Polish consumers on the experience marketing The topics cover the attitudes to the necessity of shopping, memories of exceptional consumer experiences; opinions on the presented real examples of using the experience marketing and perceived prospects for its development in Poland. Keywords: Consumer experience, shopping behaviour, experience economy, Poland 1 . Introduction Consumer shopping behaviour can be defined as "the behaviour of households and individuals buying goods and services for their own needs". The term "consumer" is used with relation to individuals who buy goods and services for their own satisfaction. There are two types of entities: individual and institutional. Individual customers buy goods and services for their own needs. Thus, goods are bought for a personal use. In the organizations, however, it is profit that matters, as they have to buy products, equipment and services to operate. (Kotler 2004, p. 601). What the organizations buy, how, where, when and in what amounts depends on the individual perception, personal perception of the offer, the social and cultural background; as well as on the family cycle, beliefs, values, motivation, personality, social class and other factors, both endogenous and exogenous (Janaki, Premila, 2012, pp. 170-171). The marketer’s role is therefore an attempt to understand the diverse needs of consumers and their various behaviours that require in-depth examination of their motivation, both internal and external. With this, marketing plans of the market participants will be consciously built. The marketing activity starts with the moment of realization of the human needs, and its outcome is visible at the moment of achieving the buyers' satisfaction (Gordon 1987). Thus, the importance of understanding consumer shopping behaviour has become the starting point from the retailers' point of view. Much research on the consumer shopping behaviour was limited to having been carried out by producers of consumer goods. Currently, it is the retailers that see the need to gather the knowledge on the customers’ shopping; in order to influence their shopping decisions more effectively. _______________________________________________________________________ Ph.D. Monika Skorek, Faculty of Management, Department of Marketing, University of Warsaw, 1/3 Szturmowa Street, Warsaw, Poland, tel:+48 601497795, e-mail:mskorek@wz.uw.edu.pl Proceedings of 5th European Business Research Conference 10 - 11 September 2015, St. Regis Hotel, Rome, Italy, ISBN: 978-1-922069-83-2 2 Literature review 2.1 The experience economy Over the last few decades there have been enormous changes in social, economic and cultural life, which had an effect on the production and commercial offer prepared by entrepreneurs. Simple goods have been replaced by more processed products. To help out the customer, an additional service has been attached to a good, to make the offer stand out among the competition and make the buyer notice it. Thus, the experience economy emerged as shown on the below picture. Figure 1: Customizing the market offer DIVERSIFIED IMPORTANT EXPERIENCE (staging) SERVICE (provision) COMPETITIVE POSITION PRODUCT (manufacturing) CUSTOMER NEEDS Good (production) NON-DIVERSIFIED UNIMPORTANT MARKET --------PRICE--------PREMIUM Source: Pine II, Gilmore (2011, p. 34) In the recent years, consumers have been undergoing transformation: from passive buyers they have become active players stimulating and creating new consumption experiences through active participation in the process of partner marketing. The empirical paradigm related to the shopping behaviour shows consumption in the holistic context as symbolic meanings, hedonistic (emotional) reactions and feeling pleasure (Hirschman and Holbrook, 1986). Following this view, theorists have agreed that human experience and shopping impulses should be interpreted as the consequences of their cognitive systems based on the interactions between them and their environment. This means that individuals responding to particular experiences form or even embody certain cognitive contexts, and act according to them. All of this eventually leads to shopping. Thus, the most important thing is to recognize the conceptual bases combining contextual behaviours and then form empirical and conceptual tools and measures to determine a role that particular factors play in the shopping behaviour. (Bashar Ahmad, Wasiq 2013, pp. 145-154). Representing the marketing approach to experiences, Pine and Gilmore(1999), considered the fathers of the concept of experience economy and Schmitt (1999a) are convinced that nowadays experience is the basis for the market offer, which allows to meet the needs and preferences of today's consumer and to develop a competitive advantage. In the subject literature you can find three definitions of experience (Ismail et al., 2011a): Proceedings of 5th European Business Research Conference 10 - 11 September 2015, St. Regis Hotel, Rome, Italy, ISBN: 978-1-922069-83-2 holistic, focusing on the human being (and not just his role as a consumer) and all the interactions that occur between him and the enterprise, eg.(LaSalle and Britton, 2003) "experience comes from a series of interactions between the customer and the product, the company or its part, which provoke a certain reaction. Experience is strictly personal and it means engaging the customer on different levels (rational, emotional, sensual, physical and spiritual" (Gentile, Spiller and Noci 2007a, p. 397), based on unforgettable experiences (assuming the key role of an enterprise, which stages the experiences for the consumer),e.g. experiences are events involving people on a personal level"; (Pine and Gilmore, 1999),. based on co-creation, in which enterprises offer the platform of goods and services, based on which consumers can create their own unique experiences, (Prahalad and Ramaswamy, 2004) "induced emotions, feelings, knowledge and skills acquired through active involvement with the enterprise before, during and after consumption" (Ismail et al. 2011a, p. 208). These types of definitions were reflected in the continuum of experiences as proposed by Caru and Cova (2007). On one side of the continuum there are experiences independently created by consumers, on the other side there are experiences staged by enterprises, while in the middle there are experiences jointly created by consumers and companies. Moving of the market offer from the staged experiences to those created independently by consumers reflects the evolution of the concept of experience economy (Boswijk et al., 2007)1. To sum up, based on the above information, it can be concluded that the use of the above - mentioned variables by enterprises can facilitate communication between the customer and the company. This will result in more accurate preparation of the offer, whose use will be more enjoyable for the customer. This way the experience economy is developing on the market. However, a question arises: is the consumer ready to participate in the concept of the shopping service presented in such a way? This question is of greater significance under Polish conditions where the discussed matter is in the initial phase of market development. Hence the presented topic has become the subject of personal research, the results of which are shown below. 2.2 Methodology The personal research was carried out in August 2013. Five focus group interviews (FGI) were made: 3 classic and 2 natural. In this research focus group interviews were carried out by specialised moderators who supervised the course of discussions, directing it according to a planned scenario and helped the group to reach conclusions. The course of group discussion was registered in the audio-visual form and the basis for the interpretation of results was in-depth analysis of the interview course. The research problem determined at this stage of research was: What is the attitude of the Polish consumer to participation in the experience economy. In accordance with the research art, three research objectives were determined to achieve during the research: 1 More about experience economy K. Dziewanowska, A. Kacprzak, M. Skorek, Gospodarka doświadczeń. Perspektywa polskiego konsumenta (The economy experiences. The prospect of Polish consumers) up comming, PWN, Warsaw october 2015. Proceedings of 5th European Business Research Conference 10 - 11 September 2015, St. Regis Hotel, Rome, Italy, ISBN: 978-1-922069-83-2 assessing the level of readiness of Polish consumers to participate in the experience economy, examining attitudes towards enterprises using the experience marketing examining possibilities for potential development of this type of economy in Poland. All participants were from cities of over 500 thousand inhabitants, due to the fact that in big cities there is a greater access to commercial outlets using tools from the area of experience marketing, and their income exceeded PLN 1 000 net. Due to the research topic, members of households with the income below PLN 500 net were excluded from the research. A detailed list of metric data is shown in the below table. Table 1 List of metric data of FGI participants Code Type of research group Age Sex Education R1 Mix 40-65 M Higher R2 R3 R4 Mix Mix Mix 18-30 40-65 40-65 M F M Secondary Higher Higher R5 Mix 40-65 F Secondary R6 R7 R8 R9 Mix MD MD MD 18-30 18-30 18-30 18-30 F F M F Higher Secondary Higher Secondary R10 MD 18-30 F Secondary R11 MD 18-30 F Secondary R12 MD 18-30 M Higher R13 MF 18-30 M Secondary R14 MF 18-30 F Secondary R15 MF 18-30 F Higher R16 MF 18-30 F Secondary R17 MF 18-30 F Secondary R18 R19 MF SD 18-30 40-65 M F Secondary Secondary R20 SD 40-65 M Higher R21 SD 40-65 M Higher R22 SD 40-65 F Higher R23 SD 40-65 F Secondary R24 R25 R26 R27 R28 SD SF SF SF SF 40-65 40-65 40-65 40-65 40-65 F F F M M Higher Higher Higher Secondary Secondary Professional situation Working: forestry mechanization specialist University student Working-secretary Working:aircraftsman Working:administrative specialist Working: physiotherapist University student Working: logistics specialist Working-barmaid Working:administrative specialist Working:administrative specialist Physiotherapist Working:administrative specialist Receptionist Working in a real estate office Working:IT specialist Working:assistant accountant Working:client advisor Working:graphic designer Working:telecommunication s engineer Working: construction engineer Working:production manager Working:administrative specialist Working:HR specialist Working:HR specialist Working:insurance analyst Working:cleaning specialist Working: tourism specialist Proceedings of 5th European Business Research Conference 10 - 11 September 2015, St. Regis Hotel, Rome, Italy, ISBN: 978-1-922069-83-2 R27 SF 40-65 M Secondary R30 SF 40-65 F Higher Working:logistics specialist Working:complaint handling specialist Personal source *Mix - mixed group; MD - younger group in a house; MF - younger group in the focus research studio; SD - an older group in a house; SF - an older group in the focus research studio The interview scenario consisted of five parts. The first included the area introducing the research theme. The respondents discussed their feelings evoked during shopping. This area was to check to what extent the participants derive pleasure from the shopping process. The second part was to examine how the participants describe feelings related to the most and the least pleasant shopping memory. The third part was to examine their attitudes towards the real examples of the experience marketing, whether it is a phenomenon that arouses their enthusiasm or their suspicion? Would they want to participate in it? In the research three presentations were used to give examples of using the experience marketing: the M& M's store in Las Vegas, The Mexican restaurant and the Guinness Storehouse. 1. M&M’s World store in Las Vegas. Glass tubes filled with colourful M&M’s pills, souvenirs in the form of trinkets with the image of favourite M&M’s characters. On the spot in a special machine, you can prepare personalised pills. For those who cannot or don’t want to go to Las Vegas, M&M’s offers the same possibility online. 2. The Mexican restaurant2 is a Polish franchise network with a characteristic Mexican design. The restaurant staff wears special clothes modelled on traditional Mexican outfits. In the restaurant there are dance performances and the musicians play Mexican songs. Also bartender shows made while serving some dishes are interesting. 3. Guinness Storehouse3, located in Dublin, is a production site for the legendary Irish beer. Every visitor is shown the detailed process of production. Then visitors go to a room where they can learn how to properly pour a perfect pint of Guinness and taste it. If you pass a test checking your beer-pouring skills, you can receive a special certificate documenting your qualifications. The aforementioned three presentations were shown to the research participants with comments to the photos so that everyone had the same level of knowledge about the examined offers associated with marketing experiences. Fourth part of the research was to determine whether the research participants were more inclined to collect material objects or intangible experiences. This area was divided into discussing three sub-categories: the old and new materialism, a definitional approach to "happiness" and transformations; a term to define the approach to the transformational aspect of the experience marketing, i.e. goods and services to change our lives. The aim of the fifth part of interviews was to check whether, in the participants' opinion, the marketing of experiences has a future in Poland. 2 3 See photos on: http://www.mexican.pl/ See photos on: http://www.guinness-storehouse.com Proceedings of 5th European Business Research Conference 10 - 11 September 2015, St. Regis Hotel, Rome, Italy, ISBN: 978-1-922069-83-2 3 Findings 3.1 Shopping as pleasure The first issue was related to the question about feelings during shopping and the attitude towards doing it. The respondents' answers showed all possible feelings, from "I love shopping" through a moderate affection or not having any feelings to an animosity towards shopping. Positive. I'm never mad that I have to go shopping. It's a pleasure. Any shopping: cosmetics, clothes, groceries (7). I don't feel any emotions, I just enter a shop, buy and "see ya", as they say (16). I don't like shopping. I never have any money. I generally hate shopping (24). In the second phase of this part of the research, the respondents were asked to comment on the kind of shopping that gives them sheer pleasure or towards which they feel aversion. Their answers can be classified according to the following categories: type of things bought, place of shopping, company in which shopping is done. " I, e.g. don't like doing grocery shopping because I always put too much into the cart and then I have to get rid of it" (3). " Contrary to the prevailing stereotypes, I somehow don't like shopping for clothes" (6). "I have recently purchased something that gave me an incredible joy". What was it? You could hear it when I came (laughs). I have bought a new motorbike. You can say that it was a management of experiences (laughs). We should make our dreams come true, so I bought a motorbike that I had seen and liked before. I knew then that I would like to have one like this. (...) I have a device that I had always dreamed of. (20). " I cannot imagine shopping with a female friend, with a female colleague, with the whole pack of women like some shop with." I wade through the..... for hours by myself" (25) "I shop for groceries because I have to, in local shops, I don't like shopping in supermarkets" (29). 3.2. An exceptional shopping memory The second part of the research focused on exceptional shopping memories. The least pleasant shopping that the respondents experienced was due to different reasons. It was the result of e.g. the presence of a moody child who made the choice of products difficult, or problems with the credit card or with finding a car at a big parking lot or with a lack of supplies. Pejorative experiences were characteristic for the sales service. Shop assistants' incompetence and tactless behaviour were mainly quoted. " I mean banking services are unpleasant for me. Not so much for the service... in Polbank the case of seizing my bank account was dealt with for an hour. The clerk after consulting the branch manager referred me to the helpline. The service was simply poor. An absolute incompetence" (27). Instead, the description of the most pleasant shopping is on one hand recalling rare situations which are long awaited, often related to buying expensive products. " I once had a situation where I bought quite expensive perfume and I got another one for free. I was shocked" (4). Amongst the respondents' answers on the most pleasant shopping, there were stories related to the individual approach to the client, appreciating long-term cooperation or Proceedings of 5th European Business Research Conference 10 - 11 September 2015, St. Regis Hotel, Rome, Italy, ISBN: 978-1-922069-83-2 receiving an unexpected freebie. The respondents also pointed to situations when shop assistants were able to admit to a mistake or show their commitment. "I really like it when the shop assistant personally recognizes me. Suddenly we receive a discount on a product. It is cool that they recognize us in this shop and we will arrange other things there" (8). 3.3. Attitudes towards real examples of using the marketing of experiences. The middle part of the described research was based on three presentations within which examples of using the marketing of experiences were shown. The cases of the M& M's World showroom from Las Vegas, the brewery of Guinness Storehouse of Dublin and the chain of the Mexican restaurants were shown. The aim of this phase was to examine attitudes of the research participants towards the real examples of the marketing of experiences. Is it a phenomenon that evokes enthusiasm or suspicion?. Would they like to participate in it? The first impression was positive amongst the research participants. After a deeper analysis the participants' emotions cooled, which resulted in the expression of criticism towards some of the shown solutions related to the marketing of experiences. The opinions differed depending on the age, although generally the activity of the Guinness Storehouse brewery was viewed most positively. In case of M& M's World the opinions were often positive referring to it as an attraction for the families with children. The greatest controversy aroused the activity of the Mexican restaurant. The comments were both positive and very critical. In the presentation of experiences there were very positive reviews: "The Mexican is fun, they play music and there are other things". I agree in 100% that it is simply the best (13), but also there were neutral opinions: "In my opinion it is not treated as a place for shopping. In this place you can spend your free time and in this process do some shopping" (20) and there were also negative comments: "This is a one-time place, you don't want to come back because it is boring" (23). Respondents are also aware that transferring of experiences is a lure the client has to pay for: " Yes, it is connected with a bit bigger costs, right. Nothing comes for free. You have to bear a greater cost for sure. I suppose that such M& M's cost much more in this factory than a package of M&M's in a shop. It is appealing but unfortunately it is also a catch for clients to leave more money here". Almost all respondents expressed their willingness to do shopping in the majority of presented examples. They indicated attractiveness of these places connected with the possibility to experience something different and unusual and to personalize souvenirs. Respondents pointed out the different possibilities of using various elements, such as giving the exceptional M& M's pills as a present or "accidentally" spilling them before their friends. Younger respondents pointed the exceptional atmosphere that accompanies meals in The Mexican, associated with live music and dancers' performances, although there was also some criticism: " I think the brewery is a great idea, because if each time a new friend joins us and we go out again and again, then at the end there is this pub where we can sit and relax. (laughs). Generally this could be repeated (13). Proceedings of 5th European Business Research Conference 10 - 11 September 2015, St. Regis Hotel, Rome, Italy, ISBN: 978-1-922069-83-2 3.4 Values and transformations Within the fourth phase of the research, three areas that make up the values and transformation were examined, i.e.: materialism and ostentatious consumption, happiness and transformations. The respondents' answers differed here depending on their age. Younger respondents pointed that they like spending money on pleasures such as sweets and brand items, which are of good quality; and on cars. " On things that will stay with me. I have to spend it on food and on cosmetics. I like spending money on clothes, books and games most" (11). The older respondents pointed the household elements, such as furniture and household appliances. It is also enjoyable for them to be able to acquire some goods in an unconventional way through different deals or work input. " I like spending money on others, in particular on kids. Toys, clothes, fun moments" (24). The most difficult question of the research turned out to be the issue of happiness. It aimed at finding to what extent the participants condition the achievement of happiness from money, material possessions and acquired experiences. The concept of happiness is defined differently by the respondents. The most interesting statement indicated the relationship between leisure and work. "He does what he likes" (21). The broadest concept of a happy man was presented by a participant from the older group carried out in the traditional way: "He accepts himself as he is, with all his disadvantages and advantages, he finds pleasure in small things. He is open for any type of experiences, people, the world and so on" (26). Transformations are an integral part of our lives. The respondents were asked about how shopping transformed their lives. The associations varied. Respondents pointed shopping on different scales and of a different character. Among others, they pointed the purchase of an apartment, a car, a horse, a bike, a computer, a mobile phone or a visit to a beauty salon and services allowing for self-development. Therefore, they associated transformation both with material and spiritual goods. "Maybe I didn't buy it, but because I have a horse, I think this caused a lot of changes in my love life and I’ve made decisions which strongly influenced the place in which I am now. These are not nice memories so I will not talk about it. But this was the moment when many things changed. I met the father of my child thanks to the horse, we are no longer together so there is no happy ending to the story but I have a son. There is always something for something in life. This was the product which apparently gives me happiness" (18). Prospects for the development of the marketing of experiences. In the final phase of the research the respondents were asked about their opinion on the future development of the marketing of experiences in Poland. Respondents again referred to the fact that in their opinion in Poland there are already actions carried out in the area of the marketing of experiences. They mainly referred to services, such as the hairdresser’s or beautician's. However, a positive conclusion is that the experience economy in Poland will be developing, in the respondents' opinion. " I think there are quite a few places of this type in Poland. But they aren't simply so popular yet or as someone said: maybe not on such a large scale" (13). Proceedings of 5th European Business Research Conference 10 - 11 September 2015, St. Regis Hotel, Rome, Italy, ISBN: 978-1-922069-83-2 However, the respondents managed to give a few specific examples which was shown in the below table. Table 2 Enterprises using the strategy based on experiences indicated by respondents. Company Action Polkomtel The possibility of testing the operation of offered Apple products. Ikea McDonald Offering toys to sets. Disneyland Creating cartoon fairy-tale atmosphere. Polish Television Brewery in Lwówek Śląski Spiż Brewery in Wrocław Wedel Chain of bars from the period of the People's Republic of Poland The possibility to visit the production facilities, the purchase of souvenirs. The possibility to design a personal birthday cake. Using souvenirs and creating sentimental atmosphere. The respondents' answers indicate the necessity of changing the activity on the market of trade entities due to a huge competition. Easy and fast comparison of product offers does not facilitate business operation. Hence there is a space for the usage of elements of the experience economy. " I think that any non-cliché activity that will make such shops stand out, irrespective of the industry, will be well perceived. Now anything that is available worldwide, is also available in Poland. There is no problem to buy something. There is an abundance of shops and we try to make shopping most comfortable and least time consuming if all shops are the same. If there is any gift, be it a feeling or an experience, then it will be its plus. This means that this enterprise will gain more customers because it will generally stand out among the others" (19) Considering the participants of the experience economy, respondents pointed mainly to young, brave and not scared of novelties. Families with children as well as modern and mature consumers were also quoted. The age and the attitude to shopping were also considered. Older persons will rather avoid solutions offered within the marketing of experiences. "Curious young people" (17). Older persons have their habits and old views on something and the advertisements do not convince them" (7). "Bored with routine shopping. "Those who have a lot of time" (19). Finally, the last issue raised was to point what would have to change in the customer shopping process to make the buyers interested in the experience economy or change their negative experiences? The group of older respondents discussed the area of materialism. In their opinion, "something" would have to be given and discounts applied. They also pointed to the comfort of time. Proceedings of 5th European Business Research Conference 10 - 11 September 2015, St. Regis Hotel, Rome, Italy, ISBN: 978-1-922069-83-2 "Any additional grants in the price of a ticket, in this case beer, I don't know, receiving some grams of M&Ms (laughs), a small mascot, a pencil with a rubber" (25). The mixed group conditions their willingness to participate in the experience economy from the amount of remuneration. "They should be paid more" (1). " You need to have more time. Poles are, however, a very busy nation and it may not succeed due to their lack of time" It looks differently in the West where they live and work. We work and live. And an attractive offer" (20). In the opinion of the younger respondents, the best way to communicate innovative marketing solutions is to use social media. The older respondents would rather see specific actions in shopping centres. 4 Discussion and managerial implications The above analysis of the conducted research shows that consumers are prepared to transition from the economy based on products or services to the economy based on the experience at a moderate level. The respondents' answers indicate a high amount of materialism. They often don't notice any additional experiences focusing only on the product functionality and price. However, they show a great approval for actions undertaken within the experience economy and they declare their willingness to participate in this type of consumer activity. The respondents who took part in FGI foresee the development of the experience economy treating it as a form of an enterprise promotion and meeting consumers' expectations. They are aware of the usage of elements of the experience economy in their environment. They indicate that success of these actions should be based on a high quality of experiences and an appropriate price strategy. In their opinion, those who are interested in the experience economy are open and curious of the world, paying attention to experiences rather than to material goods. They also point to young persons or families with children. The least interest in the experience economy may show the elderly, the poor, the intellectuals and those who feel superior. To encourage consumers to take part in the experience economy, intelligent advertising campaign could be made in social media and by word of mouth. Also, physical approach to consumers is important, particularly for older persons. 5 Limitations and further research A significant limitation of the research is the applied research method. Each qualitative research, including FGI, does not allow for testing on representative samples and generalizing the results onto the entire population. Based only on subjective statements of a small group of respondents we receive information on basic topics which should then be explored through the use of quantitative methods. Another limitation are selected examples used in the research of M & M's World, Guinness Storehouse brewery of Dublin and the chain of The Mexican restaurant. . Their low popularity on the Polish market meant that in the first two cases, the majority of respondents spoke only on the basis of shown pictures and descriptions, which certainly does not translate into the actual description of the consumer experience. The third limitation was the selection of the research sample which was made only of big cities' inhabitants, which could also influence the partiality of the respondents' opinions. Proceedings of 5th European Business Research Conference 10 - 11 September 2015, St. Regis Hotel, Rome, Italy, ISBN: 978-1-922069-83-2 Thus, the recommendation for further research is to use methods of quantitative research, choosing at the same time a well-functioning entity on the Polish market, that uses elements of the marketing of experiences and make research on a representative sample of the inhabitants of Poland. Acknowledgements This article was based on research conducted as part of a project funded by Narodowe Centrum Nauki (National Science Centre): decision number DEC-2012/05/B/HS4/04213. References Addis, M. and Holbrook, M. (2001). On the conceptual link between mass customisation and experiential consumption: An explosion of subjectivity. Journal of Consumer Behavior, 1, pp. 50-66. Bashar A., Ahmad I., Wasiq M. 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